Newsletter
September 2004
Key Money
Infuriated by key money?
Information from Rica Bradshaw to customers of ffeilden .
Aside from our usual practice of representing tenants only, we have embarked on an interesting exercise with landlords about key money.
Key money is a kind of gift money, or non-refundable deposit called reikin, tenants pay to a landlord when they move in. It is often three or four months times the monthly rent. In our view key money is rent by another name. If key money disappeared, average rents would increase to cover the shortfall.
We view key money as a problem because it is a barrier to the free movement of people and this is bad for the economy of the country as a whole. It is also a disincentive to landlords to keep their properties in good order because they know tenants are unlikely to leave. People do not want to pay key money again and again each time they move.
There is no doubt that our international customers detest key money, seeing it as money for nothing. Equally there is no doubt that owners expect to receive it, and consider it to be the money required to prepare an apartment for the market place. The negotiated compromise can leave both sides unsatisfied.
Recently we have taken a proactive approach to some landlords and explained how international customers are frustrated by key money. We asked them if they can structure a zero key money deal. Predictably, landlords with easy-to-let apartments have no interest in the deal, but some landlords with good apartments have shown some interest.
Typically we ask them to structure a deal of zero key money and one months refundable deposit. The agency fee for a tenant is also one months rent.
If this proves popular we will approach other landlords to see if we can increase the supply of no key money property. Below are some zero key money properties.
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Chuo-Ku (Sannomiya)
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RCHM0005
Two rooms 81.000yen 25 ‡u 10 minutes from Sannomiya
Convenient location
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Higashi Nada-Ku (Mikage, Okamoto, Sumiyoshi)
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RHNM0005
One room 66,000 yen 15.67 ‡u 4 minutes from JR Konan Yamate.
Also accesible to Hankyu Ashiyagawa and Okamoto
RHNM0006
Two rooms 90.000 yen 30 ‡u 5 Minutes from Hankyu Okamoto
Big balcony with mountain view
RHNH0003
3LDK 120,000 yen about 100 ‡u 8 minutes from JR Konan Yamate.
Also accesible to Hankyu Okamoto
Apacious livling space. Small garden and covered garage.
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Kurakuen
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RASM0004
2DK 65,000yen about 35 ‡u 20 minutes walk from Hankyu Kurakuenguchi
Supermarkets, nice cafes and bars near by. There is bus service from Hankyu Shukugawa.
Best regards,
Rica Bradshaw
ffeilden
http://www.ffeilden.com
info@ffeilden.com